OEC v. IRS Update: Oregon-Led Coalition Backs our Challenge to Trump’s Attacks on Wind and Solar

OEC v. IRS Update: Oregon-Led Coalition Backs our Challenge to Trump's Attacks on Wind and Solar

When we filed a federal lawsuit against the IRS in December, we knew we weren't alone in the fight for clean, affordable energy. And now, states across the country voiced their support, with Oregon leading the way. On February 20, Oregon Attorney General Dan Rayfield led a coalition of 16 state attorneys general in filing an amicus brief in support of our federal lawsuit against Trump's attacks on wind and solar. Oregon is the lead state in the filing, joined by the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Mexico, New Jersey, Rhode Island, and Washington.

Oregon Environmental Council, et al. v. IRS: A recap of the case

In August 2025, the IRS - acting on Trump's executive order to "eliminate" clean energy subsidies - gutted a provision that allowed wind and solar developers two pathways to qualify for tax credits by either starting significant physical construction or by investing at least five percent of a project's total cost. The new IRS guidance unfairly eliminated one of those pathways for wind projects and larger solar facilities, while leaving other energy industries untouched. We're arguing that this arbitrary change unfairly targets wind and solar and will lead to less investment in clean energy infrastructure, higher electricity bills for Oregon families, and extend our reliance on older, dirtier energy sources that harm our climate and communities. Other plaintiffs in the case are NRDC (Natural Resources Defense Council), Public Citizen, Hopi Utilities Corporation, Woven Energy, the City and County of San Francisco, and the Maryland Office of People's Counsel. (Read our news release about the lawsuit filing here ).

The AG coalition's support

The 16-state amicus brief adds powerful momentum to our case. The attorneys general argue that the IRS failed to provide any adequate justification for the rule change and didn't account for how it would disrupt state-level energy planning, threaten jobs, impact tax revenue tied to renewable energy development, and make it harder for states to meet their own renewable energy requirements. "Oregonians are already paying a lot for electricity," said AG Rayfield in a statement. "This just makes it harder to build clean affordable energy. We are using all the tools we have to protect consumers and keep energy bills from climbing even higher." The coalition is urging the court to restore the rules that wind and solar developers had relied on for years. We're grateful for AG Rayfield and for the nationwide coalition of attorneys general for voicing their strong opposition to Trump's unfair targeting of clean energy.

What's at stake

The federal clean energy tax credits at the heart of this case are set to expire on July 4, 2026. With electricity demand rising across Oregon - and across the nation - the need for new, affordable clean energy has never been more urgent. Blocking wind and solar from qualifying for tax credits will slow these necessary clean energy sources from expanding to meet demand. If allowed to move forward, Trump's all-out attack on wind and solar energy will sabotage the fastest-growing and most cost-effective new sources of power just as we need them most. This lawsuit seeks to reverse this illegal action and restore certainty for solar and wind projects that will lower Americans' electricity bills, clean up the air we breathe, reduce climate pollution, and create jobs and investments.

Taking action

OEC will continue to keep you informed as the case moves forward. Thank you for the support that makes this work possible. Here are some ways you can take action now in the fight for clean energy, public health, the climate, and our future.

1. Sign up for our Action Alert emails . We'll keep you informed about ways to make your voice heard when it counts the most.
2. Become a member of OEC with your donation today. Your support powers our ability to show up and fight for the environmental protections Oregonians deserve.